Frequently Asked Questions
Q. Do I still get my rent check while the application is being processed?
A. Yes. You will continue to receive your rent payments up until the moment you get our large, lump sum payment.
Q. But after I get my check from Barkley Tower Capital, LLC I won't get any more checks?
A. That's right. We are purchasing your lease and an easement. We give you your one-time, up-front payment and assume your lease. You are free to do what ever you want with the cash.
Q. What is an easement?
A. It gives a third party the right to use your land for a specifically stated purpose. A telephone or power company may have an easement from you to install and maintain the telephone poles on your property. In this case, it would be the operation of a wireless communication site.
Q. Why would Barkley Tower Capital, LLC want to buy tower and antenna leases if the need for towers in the future is questionable?
A. We aggregate these assets and acquire diversified funding for them. By doing so, certain economies of scale are captured creating new values on the larger group of assets. Consequently, greater overall values are created and risk is dispersed.
Q. Why do you want to buy my lease?
A. Barkley Tower Capital, LLC diversifies its risk by acquiring thousands of wireless facilities leases in many geographical areas. Our goal is to acquire about 30% of the wireless site leases in each market. This adds a sense of urgency to property owners, such as yourself, to act now.
Q. Am I responsible for the lease performing after it is sold?
A. No. After Barkley Tower Capital, LLC acquires the lease, its continued performance is not your responsibility. We do require that you disclose everything known to you regarding the leases and property. We will do our own due diligence from that point forward.
Q. What does the due diligence investigation consist of?
A. The due diligence investigation includes a survey of the site, review of the lease(s), financial due diligence and title work. There is no cost to the Property Owner for the due diligence work. The due diligence investigation takes about 30-45 days.
Q. How do my Tenant’s Termination Rights affect me?
A. Typically, your wireless lease agreement has a 30 to 90-day Termination Clause. Only the tenant can exercise the termination. If your lease contains this clause, it is considered a short-term agreement—regardless of the term length you may believe exists. This clause seriously limits the value of the lease and your ability to rely on the rents for any length of time greater than the stated termination period.
Q. Why should I consider converting my wireless site lease to cash?
A. Because you can use the cash to build long-term wealth, turning an uncertain asset into a long-term gain. Your wireless site lease is the only lease you can convert to cash. Many Property Owners are not aware that leases for wireless sites, regardless of the stated maximum term, can usually be terminated by the tenant in as short as 30 to 90 days. If your lease payments go away, they’re gone. You cannot use these leases as collateral for loans; Barkley Tower Capital, LLC offers Property Owners large lump sum cash payments for their leases. When you sell your lease for cash, you eliminate risk and free up cash to take advantage of other opportunities.
Q. Is it true that I'm not getting as much money as I would by keeping the lease?
A. Actually, you have a lease that is cancelable on 30 - 90 days notice. Competition, consolidation, new technology could make your tower no longer necessary or less valuable to the renter. In that case you'd be getting a lot less than what you have left on the lease. The best insurance is cash.
Q. How is the cash price for my lease determined?
A. Call us - we can give you an idea of the value range. The final price is determined by a review of your lease, an analysis of the surrounding area, including population growth projections, and a number of other factors. An analysis of your lease can usually be completed within a couple of days. After a value is determined, you will be offered a large, lump sum cash payment for your interest in the lease.
Q. Can you tell me more about what's going on in the telecommunications industry?
A. Consolidation, like the merger of Cingular and AT&T Wireless, will cause the decommissioning of hundreds, maybe thousands of towers and antenna sites. You know by looking at the stock market that the telecommunications business is one of the more depressed areas of the economy. The wireless phone and tower companies have borrowed hundreds of billions of dollars and their profits are going down - fewer new customers and new competitors. Stock prices for the top wireless carriers and tower operators have declined 80% since their highs of just a couple of years ago. High debt and low profits probably means that tower owners may begin to look to lower rents to reduce expenses.
Q. Do I still own the land?
A. Yes. Your land is still yours – you keep it, sell it or pass it to your children.
Q. Would the purchase of an easement interest in my land limit my rights to sell my property in the future?
A. The purchase of an easement interest in your land does not limit your right to sell your property.
Q. Will I ever be obligated to pay back any money that I receive from this agreement?
A. No. Once the transaction is complete, you are under no obligation to return any portion of the proceeds. Your only ongoing obligations are to allow the carrier to have access to the site and fulfilling the promises of the original lease. The money you receive is yours to keep, regardless of whether or not the site is ever decommissioned. If you plan or decide to sell the underlying property, the proceeds of the transaction are yours—regardless of the property ownership.
Q. So I get to keep the money even if I sell the land?
Q. What happens if I have a mortgage?
A. Barkley Tower Capital, LLC will need a release from your bank. This is just an agreement with your lender confirming that your bank recognizes the easement that you've entered into with Barkley Tower Capital, LLC.
Q. What if I want to develop my property in the future and want to move the tower or antennas at a later date?
A. This can be accomplished in some cases so long as the relocation of the asset is consistent with the lease, is approved by the asset owner and does not cause the asset or lease to be adversely affected.
Q. Do I pay more taxes when making this type of sale?
A. We recommend you discuss this with your tax advisor. The IRS tax code states that you may take a capital gains approach to the taxation of the purchase price. Currently, you're paying ordinary income tax rates – up to 40% - on your monthly lease rent. Well, this may be taxed at capital gain rates, which usually means 25%. Also, explore a 1031 tax-free exchange that offers extraordinary tax advantages. However, you are again strongly encouraged to secure professional tax advice on this issue.
Q. How long will this take to close?
A. 6-12 weeks to get you your check. Barkley Tower Capital, LLC needs to analyze the lease, survey the site and the surrounding area, perform a title search and, if you have a mortgage, secure a SNDA from your lender. Barkley Tower Capital, LLC will assist you in clearing these issues.
Q. When can we start?
Q. Can I think it over?
A. Yes—please think it over. We realize that as a prudent investor, you will want to discuss your options with your personal and professional advisors before making a decision. Familiarize yourself with the Barkley Tower Capital, LLC’s offer and ask yourself: “Will I be better off if I sell my lease for cash and reinvest the money?”
Please be mindful that the number of leases we will purchase in your area is limited. We have a specific budget for each geographic area. Once we meet our budget goal in your area, we will then move on to other areas. There is no certainty that Barkley Tower Capital, LLC’s offer will be in effect, within your area, at a later time.